On September 28, China's Ministry of State Security stated that some people mistakenly believe using virtual currencies to receive and transfer funds can sever ties to personal identities. However, the so-called 'anonymity' of virtual currencies is merely superficial and not beyond the reach of the law. The Ministry of State Security pointed out that virtual currencies have been used in illegal activities such as money laundering, telecom fraud, online gambling, and cross-border smuggling. Related fund flows can still be traced and held accountable according to the law.